Cocoon Capital, which is one of Southeast Asia’s top-performing early-stage venture capital firms, announced the first closing of its third fund, securing $30 million towards a $50 million target. Fund III continues Cocoon’s strategy of investing in high-conviction, early-stage, enterprise, and deep tech startups in critical Southeast Asian sectors.
Cocoon’s hands-on founder-first approach aims to build a resilient and transformational portfolio. The fund will target 20 pre-seed and seed-stage investments, with about 55% of capital reserved for follow-ons to sustain support for its strongest companies.
In an area where investor returns are hard to come by, Cocoon Capital’s performance stands out. And Fund I and Fund II are actively returning capital to investors and achieving the leading Distributed to Paid-In Capital (DPI) in the region.
Cocoon leads every seed round, takes a board seat, and sets up a 10-step due diligence framework covering governance, technical depth, and founder aptitude. Following the investment, founders gain access to Cocoon Academy, a platform offering governance playbooks, financial fundamentals, coaching, and a curated network of domain experts and follow-on investors.
With a target of only five investments per year, the team is also deeply engaged with each portfolio company, providing not just capital, but true partnership and support.
Some of the portfolio companies reflect this vision:
1.) Aprisium enables micron-level industrial contamination detection.
2.) Augmentus, a no-code robotics platform, is used by global manufacturers.
3.) Others include BuyMed (Vietnam’s leading B2B pharmaceutical distributor), TransTRACK (fleet optimisation), and Shomvob (Bangladesh-based job-tech platform with embedded fintech).
Fund III’s first closing includes a strong base of returning limited partners (LPs)—many increasing commitments—and new backers from Asia, Europe, and North America, including institutional investors, successful founders, and family offices.
KEY QUOTES:
“We’re not chasing buzzwords. We back founders solving hard, often unsexy problems, whether it’s modernising manufacturing, healthcare, or financial infrastructure.”
“We’re not just delivering returns. We’re helping build companies that survive downturns, redefine industries, and put Southeast Asia on the global innovation map.”
Michael Blakey, Managing Partner at Cocoon Capital
“The digital transformation of Southeast Asia’s traditional industries is still in its infancy. We’re backing founders modernising sectors underserved by innovation—those solving long-term challenges that require long-term capital and commitment.”
Carol Cheung, Partner at Cocoon
“These are not regional plays—they’re solving universal challenges, with Southeast Asia as their launchpad to global markets.”
Zongxi Sia, Investment Director
“In today’s environment, finding a fund like Cocoon is rare. Their focus on deeply technical, transformational companies and their proven ability to achieve exits made it an easy decision to continue supporting them.”
Gregoire Baudin, a returning LP
